How is Bank Statement Income Calculated?
Total deposits, less business expense ratio, annualized, multiplied by the % of ownership
Standard 50/50 deposit to expense ratio is used but can be up to 65/35 if supported by a CPA expense statement.
Company Ownership %
Borrower(s) must own at least 50% of the company to use a business account for income.
Business Bank Statements
If the borrower also has a Business Bank Account we will use 100% of personal account deposits averaged over a 12/24 mo. period with 2 mo. business bank statements.
Business Bank Account an expense ratio will be applied
Working from home with no employees is eligible for an 85/15 deposit to expense ratio supported by a CPA expense statement, otherwise max 65/35 ratio.